Instructions

Study the following graph carefully and answer questions given below it.

Percent Profit = $$\frac{Income-Expenditure}{Expenditure}*100$$

Question 54

If the incomes of Company B in 2002 and 2003 were in the ratio of 3 : 4 respectively. What was the respective ratio of expenditures of that company in these two years ?

Solution

Let the incomes in 2002 and 2003 be 3x and 4x respectively and expenditures be E1 and E2.

In 2002, % profit = 100 * (I-E)/E

=> .45 = (3x - E1)/E1

So, 3x= 1.45E1

In 2003,% profit = 100 * (I-E)/E

=> .5 = (4x - E2)/E2

4x = 1.5 E2

So, E1: E2 = 3/1.45: 4/1.5 = 4.5 : 5.8

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